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Building Blocks of Behavioral Strategy

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This is a proven framework used by global strategy consulting firms for Fortune 500 companies. Learn this methodology and enrich your expertise. Then, save time by lifting slides directly from this presentation into your own.

Behavioral Economics has exposed that not many strategists making crucial decisions consciously consider cognitive biases. These biases are systematic human tendencies to deviate from rational calculations. In strategic decision making, leaders need to recognize their own biases, as these biases influence important strategic decisions made by the smartest managers in the best companies.

This slide deck begins with a discussion on the 9 most common Cognitive Biases in humans:

1. Conservatism Bias
2. Base Rate Neglect
3. Confirmation Bias
4. Sample Size Neglect
5. Hindsight Bias
6. Anchoring and Adjustment
7. Mental Accounting
8. Availability Bias
9. Framing Bias

These subconscious biases impair strategic decision making. Leaders need to manage them to improve corporate performance.

The presentation then discusses the results of a decision making study quantifying the financial benefits of processes that "de-bias" strategic decisions and make a case for applying behavioral strategy. Next, there is a deliberation on the 3 key factors affecting decision making effectiveness.

Finally, the deck talks about the 5 Building Blocks of Behavioral Strategy that are extremely useful in offsetting human biases and enabling unbiased decision making:

1. Counter Pattern Recognition Biases by Reframing the Perspective
2. Counter Action-oriented Biases by Recognizing Uncertainty
3. Counter Stability Biases by Changing Things Up
4. Counter Interest Biases by Making Them Explicit
5. Counter Social Biases by Depersonalizing Discussions

The slide deck also includes some slide templates for you to use in your own business presentations.


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  • File size: info unavailable
  • Slides (including separators): 29
  • Fully editable in PowerPoint
  • Free, unlimited updates for lifetime of product
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